Microsoft may be bringing Steam support to Xbox consoles, further blurring the lines between console and PC gaming.  As Sony and Nintendo maintain their focus on hardware sales, Microsoft continues to expand its software services, reaching smart TVs, mobile platforms, and potentially even competing handheld devices.

The potential integration was hinted at in a now-deleted image showcasing a revamped Xbox UI. The image, obtained by The Verge, featured a Steam games category within the user's game library on a TV interface, suggesting the feature could be coming to Xbox consoles.  The image also showed the Steam category on a tablet and an Asus ROG Ally, aligning with Microsoft's stated goal of merging Xbox and Windows experiences on handhelds.

While the leaked image could be dismissed as a simple error, given the duplicated menu options and its subsequent removal, The Verge reports that internal sources have confirmed Microsoft is developing an update to display all installed PC games within the Xbox app, including those from Steam. This move aligns with Microsoft's software-centric business model, which has driven Xbox growth despite recent declines in console sales.

Providing access to Steam games on Microsoft platforms strengthens its software offerings, making them more attractive to a wider audience. The potential release of an Xbox handheld between late 2025 and 2027 could provide a prime opportunity to launch Steam support, capitalizing on the expanding handheld gaming market.  However, these details remain speculative at this time.

Microsoft's increasing willingness to embrace cross-platform compatibility is evident in its Game Pass strategy.  With PlayStation users accounting for a significant portion of Microsoft game sales, the company seems less concerned with platform exclusivity and more focused on expanding its software reach.  This philosophy suggests that bringing Steam support to Xbox consoles wouldn't be a surprising move.